“…the prohibition on negotiating price was kind of a poison pill in the original Medicare Act.”
“The pharmaceutical industry is one of the most powerful and well-funded interest groups in Washington. Its lobbyists have long argued that negotiating drug prices would harm patients, limit access to medicines, and stifle innovation, even though the U.S. government helps fund research and development on all drugs that are approved for sale.”
“A study by The Institute for New Economic found the federal government spent a combined $11.7 billion on basic and applied research that led to the development of these drugs. Some $6.5 billion of that was spent on developing Stelara, a Johnson & Johnson drug used to treat Crohn’s disease, arthritis and psoriasis.”
“Similarly, Fred Ledley, director for the Center for Integration of Science and Industry at Bentley University, said the program sets positive precedent. “People forget that the prohibition on negotiating price was kind of a poison pill in the original Medicare Act,” Ledley said. “We see this as a return to normal business-government interactions, where you negotiate a fair price. That’s what the government does in general, on behalf of the public.”
